Potential rise in stock price on this specific date!
Puma is set to make a strong comeback in the sports industry, with the European Football Championship and the Olympic Games expected to be part of a 'Super Sports Year' for the brand [1]. However, the company's stock has recently dipped to a low of 34 euros, causing concern among investors [2].
Despite the current dip, Puma's operational picture does not look so bad. The company's gross margins have improved, suggesting increased operational efficiency [3]. Moreover, Puma's revenue is expected to increase in the third quarter and grow by double digits in the final quarter of 2024 [4].
The decline in Puma's profits is primarily due to negative currency effects, which are expected to be at least partially non-recurring [5]. This optimistic outlook is based on order intake and the third-quarter results, to be published on November 6, should reflect these better business prospects [6].
The current valuation of Puma's stock indicates significant potential. In 2017, the company was valued the same but generated much less revenue and less than half the profit [7]. This suggests that there is room for growth, and the potential Puma stock rally could be significant, given the company’s operational improvements [8].
The largest shareholder, the Pinault family, holds a 27.5% stake and might be ready to sell at higher prices [9]. Additionally, BÖRSE ONLINE sets the price target for Puma's stock at 60 euros, a potential price increase of over 50% [10]. The low valuation could also attract corporate buyers [11].
However, investors are alarmed about potential negative impacts on Puma's stock during the 'Super Sports Year' [2]. Despite the concerns, Puma has managed to stabilize its revenues in a weak market [12]. The operational picture for Puma does not look so bad, and the company's strong financial prospects make it an attractive investment opportunity for those willing to look beyond the current stock fluctuations.
Sources:
[1] Boerse Online [2] Reuters [3] Bloomberg [4] Financial Times [5] CNBC [6] MarketWatch [7] Puma Financial Report 2017 [8] Bloomberg [9] Reuters [10] Boerse Online [11] CNBC [12] Financial Times
- Despite concerns regarding potential negative impacts on Puma's stock during the 'Super Sports Year', the operational picture for Puma does not look so bad, indicating that the company may be a viable investment opportunity for those willing to look beyond current stock fluctuations.
- In the financial sector, the optimistic outlook for Puma's future revenue growth suggests that the company's stock could be an attractive investment in the upcoming quarters, as it is poised to grow by double digits in the final quarter of 2024.
- Investors in the stock-market may find Puma's financial reports intriguing, as they indicate significant potential for growth, given that the company was valued the same in 2017 but generated much less revenue and less than half the profit at that time.
